Alaska’s energy infrastructure requires modernization to improve reliability, integrate clean energy sources, and support economic development. A $206.5 million federal grant has been awarded for Phase I of a project to strengthen the electric grid between the Kenai Peninsula and the Interior. Matching funds are needed from the State of Alaska to secure the full benefits of the grant. Governor Dunleavy has proposed budget amendments to fund the initial work, and the Legislature is considering including funding in the fiscal year 2025 capital budget.